1. FERC issued Order 1920 for long-term planning of the US transmission network.
2. The order requires transmission providers to conduct planning for regional facilities over a 20-year horizon.
3. Specific requirements include identifying long-term needs, updating every five years, and considering grid-enhancing technologies for efficiency and cost-effectiveness.
The US Federal Energy Regulatory Commission (FERC) has issued Order 1920, the first long-term planning directive for the country’s transmission network, following an extensive three-year stakeholder process. This order aims to address the growing demand for reliable electricity by requiring transmission providers to conduct regional planning over a 20-year horizon, with updates every five years.
This marks the first time in over a decade that FERC has tackled regional transmission policy and emphasized the need for long-term planning. FERC Chairman Willie Phillips noted the challenges facing the US grid, including an increase in demand for affordable electricity, extreme weather threats, and technological changes.
Order 1920 outlines seven benefits that must be considered in determining the efficiency and cost-effectiveness of proposals to address long-term transmission needs, including reducing reliability issues, energy losses, and congestion, as well as improving capacity and cost benefits. It also encourages the use of grid-enhancing technologies and ‘right-sizing’ existing facilities to increase their capacity.
Transmission operators must engage with state entities and propose cost allocation methods before submitting filings for new facilities, with compliance deadlines set within 10 to 12 months of the order’s publication. The order will take effect 60 days after publication, initiating a new phase of long-term planning and development in the US transmission network.